Elliottwave-Forecast

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In this technical blog, we are going to take a look at the past performance of the 1 hour Elliott wave charts of Nike ticker symbol: $NKE. In which, the rally from July 20, 2020 low ( $8830) showed an impulse rally higher favored more upside extension to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in Nike in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

Nike 1 Hour Elliott Wave Chart
Nike Forecasting The Bounce Higher From Blue Box Area

Nike 1 hour Elliott Wave Chart from 8/12/2020 Pre-Market update. In which, the stock is showing an impulse rally with extended wave ((iii)). Whereas wave ((i)) ended at $99.29 high. Wave ((ii)) pullback ended at $96.56 low and wave ((iii)) ended at $107.33 high. Down from there, Bitcoin entered wave ((iv)) pullback to correct the short term cycle from $96.56 low. The internals of that pullback unfolded as a double three structure where lesser degree wave (w) ended at $104.86 low. Wave (x) ended at $106.70 high and wave (y) was expected to reach the blue box area at $104.19- $102.64 100%-161.8% Fibonacci extension area of (w)-(x). From there, the stock was expected to resume for wave ((v)) or do a 3 wave reaction higher at least.

Nike 1 Hour Elliott Wave Chart
Nike Forecasting The Bounce Higher From Blue Box Area

Here’s Latest 1 Hour Elliott Wave Chart from 8/18/2020 Post-Market update. In which, Nike is showing reaction higher taking place from the blue box area. Allowed members to create a risk-free position shortly after taking the long positions.
 

Elliottwave-Forecast

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The Micex Index Long Term Cycles and Bullish Trend

The Micex index has trended higher with other world indices since inception. The index remained in a long term bullish trend cycle into the December 2007 highs. It made a sharp correction lower in 2008 that lasted until October 2008 similar to other world indices. That is where the index corrected the whole decades long bullish cycle.

Firstly from the October 2008 lows the index rose into the April 2011 highs. Then the index saw an almost 3 year long correction of that cycle into the March 2014 lows. That pullback corrected the whole cycle up from the 2008 lows. From there to the January 2020 highs reached the blue box highlighted Fibonacci extension area. This is a typical area where the second cycle with the tread reaches. This area was defined by measuring a Fibonacci extension from the beginning level zero up to the December 2007 high down to the October 2008 low.

The analysis continues below the chart.

Monthly Chart



Secondly I would like to mention this overall price movement in the bullish cycles leaves the index in a couple of different scenarios. One way to view it from an Elliott wave perspective is the January 2020 highs was the end of a larger degree third wave. I do not prefer this because it suggests after a few more new highs back above the January 2020 highs the index will suffer a huge correction bigger than ever seen before.

Thirdly in conclusion. The positive progression of mankind is reflected in equity indices. I do believe in the technical indicators that suggests I saw enough pain in the dips into the 2008 as well as the March 2020 lows that should eventually prove to be longer term cycle lows. I think the index has a longer term series of nested wave ones and twos. As suggested on the chart I think the cycle from the March 2020 lows should continue higher in the near term before a pullback corrects that cycle. I expect the index will remain above there for a long time progressing higher.
 

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Elliott Wave View of S&P 500 (SPX) suggests the rally from July 25,2020 low has ended at 3399.54 high as wave 3, which is also a new all-time high. Up from July 25 low, wave ((i)) ended at 3264.74 high and wave ((ii)) dip ended at 3204.13 low. Index then extended higher in wave ((iii)) towards 3381.01 high. The internal subdivision of wave ((iii)) unfolded as 5 waves impulse Elliott Wave Structure. Wave (i) of ((iii)) ended at 3264.74 high and wave (ii) pullback ended at 3220.26 low. Rally higher in wave (iii) then ended at 3351.92 high, followed by wave (iv) pullback, which ended at 3328.72 low. Wave (v) then extended higher and ended at 3381.01 high.

Afterwards, the Index did a pullback in wave ((iv)), which ended at 3326.44 low. Finally, wave ((v)) higher ended at 3399.54 high. This final move completed wave 3 in higher degree and ended cycle from July 25 low. Index is currently correcting that cycle within wave 4. The correction is unfolding as a zigzag correction, where wave ((a)) is currently in progress. The bounce in wave ((b)) should follow before another leg lower in wave ((c)) to end wave 4. As long as 3199.50 low stays intact, expect the dips in 3,7 or 11 swings to find support for more upside.

SPX 30 Minutes Elliott Wave Chart
SPX 8.20.2020 Asia
 

Elliottwave-Forecast

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Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of XLV , published in members area of the website. As our members know, XLV is another instrument that we have been trading lately. The price is showing Impulsive sequences in the cycle from the March low (73.86) . The price structure of XLV has been calling for further rally. Consequently, we advised members to avoid selling XLV and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and trading strategy.

XLV 1 Hour Elliott Wave Analysis 7.31.2020
Wave (2) blue pull back is unfolding as Elliott Wave Zig Zag and still looks incomplete at the moment. The price is reaching equal legs area at 104.22-103.49 (buyers zone). As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We don’t recommend selling it against the main trend in any proposed pull back. We favor the long side from the marked blue box area. As the main trend is bullish, we expect to see 3 waves bounce at least from the mentioned zone. As soon as the price reach 50 Fibonacci Retracement against the B red peak, we should make long positions Risk Free ( put SL at BE).

You can learn more about Zig Zag Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.

XLV

XLV 1 Hour Elliott Wave Analysis 8.04.2020
XLV found buyers at 104.22-103.49 , the Blue Box area. We got nice rally from there, when wave (2) pull back completed at 104.15 low. All longs from the blue box should be risk free at this stage. As far as the pivot at 104.15 low holds , we expect XLV to keep trading higher as proposed on the charts. We don't recommend selling it, and favor staying long from the blue box in risk free positions.

XLV

XLV 1 Hour Elliott Wave Analysis 8.17.2020
After sideways consolidation we got another leg down and wave 2 red pull back completed. 104.15 pivot held nicely during wave 2 pull back. We got further rally after 2 red completed.

You can check most recent charts in the membership area of the site. Keep in mind not every chart is trading recommendation. The best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.

XLV

Elliott Wave Forecast
 

Elliottwave-Forecast

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$KGH : Major Metals Producer KGHM Ramping Up

KGHM Polska Miedź S.A. is a multinational corporation which has its headquarters in Lubin, Poland. Traded under tickers $KGH at WSE and $KGHPF in US in form of ADRs, it is a component of the WIG30 index. KGHM has been a major copper and silver producer for more than 50 years. As a matter of fact, it operates 9 underground and open-pit mines located in Poland, USA, Canada and Chile and is actively advancing other projects. KGHM produces key global resources including copper, silver, gold, platinum, nickel and others. Currently, we see metals like copper and silver turning higher after the years of depressed prices. As a rule, the rally in prices of metals provides a magnifying effect on the share prices of metals producing companies. Therefore, KGHM being one of major producers should become a profitable investment target as it should ramp up along with acceleration in commodities prices.
KGHM Monthly Elliott Wave Analysis 08.21.2020
The monthly chart below shows the KGHM shares $KGH traded at Warsaw Stock Exchange. First, from the all-time lows, the stock price has developed a cycle higher in wave (I). Hereby, KGHM has printed a top in October 2007 at 145. Since the red wave III of blue wave ((I)) shows a price separation higher, the cycle up is obviously an impulse. From the highs, a correction lower in wave (II) has unfolded as a zigzag correction being a 5-3-5 structure. It has found an important bottom in October 2008 at 20.10.
From the 2008 lows, another motive cycle has started. KGHM has broken the 2007 highs at 145 in a 5 waves move in the red wave I. Hereby, the share price has printed the all-time highs in April 2011 at 200.30. From the highs, a multi-year correction in wave II has started. Hereby, one can recognize a double three pattern. It has ended in March 2020 with a capitulation move down to 48.
From the March 2020 lows at 48, KGHM has started a new cycle higher in wave III of (III). It is favored to break to the new all-time highs. The target area for the wave III to end is towards 229.05-340.55. As of right now, first leg up can be seen. Alternatively to a proposed rally, expect after a pullback another leg higher at least.
KGHM Elliott Wave Monthly
KGHM 4H Elliott Wave Analysis 08.21.2020
The 4H chart below shows in more detail the advance higher from the March lows at 48. The cycle up remains still intact and might be currently in the wave 5 of (1). Together with major indices, expect the march cycle to end soon. After a pullback in wave (2), another extension higher should take place.
In overall, monthly but also 4H view on $KGH shows a strong correlation to the copper prices. The march cycle is similar also to that in silver, copper and indices. All these instruments may be turning up and are expected to see more upside. Therefore, KGHM can be a smart investment for those who want take an advantage of rising prises in both stocks and commodities.
KGHM Elliott Wave 4H
 

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First Majestic Silver ($AG) Broke Higher from 10 Year Consolidation

First Majestic Silver (symbol: $AG) is a Canadian silver-mining company which operates in Mexico. It has 7 mines, although only 3 most cost-efficient mines are currently operating in San Dimas, Santa Elena, and La Encantada. It’s considered to be one of the purest silver mining companies with 60% of the revenue derived from Silver. If the price of Silver can continue to rise, the stock price of the company should rise along with it and likely at a higher percentage due to the multiple effect.
Most of silver produced today is a byproduct of mining copper, lead, and zinc. A pure silver mining company is pretty rare nowadays with the last 10 years bear market decimating the industry. Below is the revenue comparison of various silver miners

First Majestic currently ranks number one in terms of the silver revenue’s contribution to the total revenue of the company. It’s a leverage play in silver if investors believe in the bullish potential of the underlying metal.
First Majestic Monthly Elliott Wave Chart
First Majestic Monthly Elliott Wave Chart
Monthly Elliott Wave chart above shows the stock has broken above 10 year consolidation. Last week price has retraced to retest the point of the breakout. As far as price doesn’t close inside the triangle again, it has chance to extend higher again. Potential Elliott Wave structure from 2009 low can be a nest where the rally to April 2011 high at $26.88 ended wave (I). Pullback to $2.4 on January 2016 low ended wave (II). Wave (III) is currently in progress where wave I ended at $19.15, and wave II ended at $4.17 during the Covid-19 selloff. Pullback from here should find support in 3, 7, or 11 swing for further upside.
 

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XLI Forecasting The Rally After Elliott Wave Zig Zag

Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of XLI , published in members area of the website. As our members know, we’ve been calling rally in XLI within the cycle from the 65.61 low. We got pull back that unfolded as Elliott Wave Zig Zag pattern ABC. In the further text we are going to explain the Elliott Wave Pattern and the Forecast.
Before we take a look at the real market example, let’s explain Elliott Wave Zigzag pattern.
Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.
XLI
XLI 1 Hour Elliott Wave Analysis 7.31.2020
Current view suggests wave (2) blue pull back is unfolding as Elliott Wave Zig Zag. Correction still looks incomplete at the moment. We expect to see 5 waves down in C red leg as well. As of right now we’re looking for more downside in short term toward equal legs area at 71.20-70.15 (buyers zone). As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We don’t recommend selling it in proposed extension down and expect to see further rally from the blue box or 3 waves bounce at least .
XLI
XLI 1 Hour Elliott Wave Analysis 8.2.2020
XLI gave us decline toward blue box area. It found buyers at 71.20-70.15, the Blue Box area. We got nice rally from there, when wave (2) pull back completed at 70.57 low. As far as the price stays above 70.57 , we expect XLI to keep trading higher as proposed on the charts. We don’t recommend selling it, and expect further rally from the blue box.
XLI
XLI 1 Hour Elliott Wave Analysis 8.9.2020
XLI held above 70.57 during short term pull back and we got further rally toward new highs. Consequently XLI remains bullish against the 70.57 low and should ideally keep finding buyers in 3,7,11 swings.
You can check most recent charts in the membership area of the site. Keep in mind not every chart is trading recommendation. The best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
XLI
 

Elliottwave-Forecast

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Elliott Wave View: DAX Resumes Rally Higher

Elliott Wave View of DAX suggests the rally from July 30,2020 low has ended at 13101.12 high as wave (1). Up from July 30 low, wave 1 ended at 12799.21 high and wave 2 dip ended at 12517.44 low. Index then extended higher in wave 3 towards 13046.13 high. Afterwards, the Index did a pullback in wave 4, which ended at 12909.72 low. Finally, wave 5 higher ended at 13101.12 high. This final move completed wave (1) in higher degree and ended cycle from July 30 low.
Subsequently, Index corrected that cycle within wave (2). The correction unfolded as zigzag Elliott Wave Structure , where wave A ended at 12797.52 low. The bounce in wave B ended at 13052.84 high. Wave C then ended at 12632.46 low, which also ended wave (2) in the higher degree. The pullback reached the 100-161.8% extension blue box area. From there, Index has resumed the rally and extended higher. The rally in wave 1 has broken above previous wave (1) high, confirming that the next leg higher has started. Currently, wave 2 pullback is in progress. As long as 12632.46 low stays intact, expect the dips in 3,7 or 11 swings to find support for more upside. The minimum target of wave (3) is the 100-161.8% extension of wave (1)-(2) between 13498-14034 area.
DAX 30 Minutes Elliott Wave Chart
DAX 8.25.20 Asia
 

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DOCU: Docusign Growth Accelerated due to Covid Pandemic

DOCU History: From contracts to offer letters to purchase orders, agreements are the foundation of doing business. Innovation and agreements are intrinsically connected. Both fuel each other and create that opportunity where ideas collide and intellectual capital starts to flow. Had it not been for the innovative thinking of certain businesses, industries and luminaries, opportunities to change the world would have been lost. Throughout history, agreements helped some of the most important innovations come to life.

From contracts to offer letters to purchase orders, agreements are the foundation of doing business. Yet many organizations still rely on manual, disconnected processes to get agreements done—wasting time and money, increasing errors and risk, and frustrating employees and customers.

In the early 2000s, Seattle-based entrepreneur Tom Gonser started DocuSign because he wanted to fundamentally change how business transactions happen. At that time the only available solutions were very complicated.

Docusign is one of the companies which gained tremendously after the pandemic hit the World. Gains can be attributed to growth seen due to more companies and businesses using Docusign to sign agreements, contracts and offers in a very safe manner by signing them online using Docusign. DOCU gained 254% since the low seen back in March 2020, today we will take a look at that rally and the long-term Elliott wave forecast for this ticker.

DOCU Weekly Elliott Wave Analysis
Weekly chart below shows DOCU rally to be unfolding as an Elliott Wave Impulse and the reason is extension in proposed wave III. Chart shows the rally to $68.35 was wave I, pull back to $35.06 was wave II, peak at $92.55 was wave ((1)) of III and the COVID-19 low in March 2020 at $64.88 was wave ((2)), strong rally to $229.83 was wave ((3)) as it reached and exceeded 261.8% Fibonacci extension of wave ((1)) and wave ((4)) pull back has either completed at $189.12 or could become a triangle or a double correction in which case we can see a break below $189.12 to complete wave ((4)) before a turn higher in wave ((5)) which should complete red III i.e. cycle from November 2018 low. Once wave III is complete, we expect a pull back in wave IV to correct the cycle from November 2018 low and then turn higher in wave V.

DOCU Weekly Elliott Wave Analysis



DOCU Daily Elliott Wave Analysis
Chart below shows the daily chart and as prices stay above $189.12, wave ((5)) is expected to extend higher toward $239.88 – $255.76 to complete wave ((5)) of III. Wave ((4)) can still take the form of a triangle or even become a double correction in which case it can see $175.07 – $149.03 area before a turn higher takes place in wave ((5)).

DOCU Daily Elliott Wave Analysis
 

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Elliott Wave View: Support Expected in SPY Pullback

Elliott Wave View of SPY suggests the rally from July 25,2020 low has ended at 339.61 high as wave 3. Afterwards, the ETF did a pullback in wave 4 to correct that cycle. The dip unfolded as zigzag Elliott Wave Structure. From wave 3 high, wave ((a)) ended at 337.69 low. The bounce in wave ((b)) ended at 337.52 high. SPY then pushed lower in wave ((c)) and ended at 335.01 low. This completed wave 4 in the higher degree. Since then, the ETF has resumed higher from that wave 4 low. The rally has broken above wave 3 high, confirming that the next leg higher is in progress.

Up from August 20 low, wave (i) ended at 337.23 high and wave (ii) dip ended at 335.22 low. The ETF then extended higher in wave (iii) towards 344.77 high. Wave (iv) pullback then ended at 342.27 low. Currently, wave (v) is still in progress and could see another marginal high before ending 5 waves up from August 20 low as wave ((i)). Afterwards, 3 waves pullback should follow before upside resume again. As long as 335.01 low stays intact, expect the dips in 3,7 or 11 swings to find support for more upside. The alternate is that SPY could be ending wave 5 and also the cycle from July 14 low. If the ETF breaks the low at 335.01, then SPY could be doing a larger 3 waves pullback to correct the cycle from July 14 low before upside resume.

SPY 30 Minutes Elliott Wave Chart
SPY 8.26.20 Post Market
 

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Nikkei (NKD_F) Reacted Higher From Blue Box Area

In this blog, we are going to take a look at the Elliott Wave chart of Nikkei (NKD_F). The NY Midday chart update from August 20 shows that Index has ended the cycle from August 7 low as wave 3 at 23355 high. The sub-waves of the rally unfolded as 5 waves impulsive structure. Elliott Wave theory dictates that 3 waves pullback should happen afterwards before the rally continues.

Down from wave 3 high, wave (w) ended at 23065 low. The bounce in wave (x) ended at 23250 high. The index then declined lower in wave (y) and reached the blue box, which is 100-161.8% extension of wave (w)-(x). From that blue box, Index saw 3 waves bounce. However, the bounce failed below wave 3 high and extended lower breaking the previous wave ((w)) low. That wave ((x)) bounce ended at 23205 high. This indicates that the pullback is unfolding as double three correction.

Nikkei (NKD_F) 8.20.2020 NY Midday Elliott Wave Chart
Nikkei 8.20.2020 Midday

1 hour NY chart update from August 21 shows that Index managed to reach another blue box. This second blue box is the 100-161.8% extension of wave ((w))-((x)). As long as 161.8% extension level stays intact, index is expected to see another 3 waves bounce at least from there or to resume the rally if it can break above previous wave 3 high.

Nikkei (NKD_F) 8.21.2020 NY Elliott Wave Chart
Nikkei 8.21.2020 NY

1 hour Asia chart update from August 26 shows that Index ended wave 4 pullback at 22710 low, which is within the blue box. From there, Index has managed to resume higher. Up from wave 4 low, Index ended wave ((i)) at 23430 high. That rally broke above previous wave 3 high, confirming that the next leg higher in wave 5 has already started. Currently wave ((ii)) pullback is in progress. As long as the low at 22710 low stays intact, the dip in 3,7 or 11 swings is expected to find support for more upside. The alternate is that Nikkei could have ended wave 5 and cycle from July 31 low. If the index breaks below 22710 low, then Nikkei could be doing a larger 3 waves pullback to correct cycle from July 31 low in 3,7 or 11 swings before upside resume again.

Nikkei (NKD_F) 8.26.2020 Asia Elliott Wave Chart
Nikkei 8.26.20 Asia
 

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DAX Reacting Higher Once Again From Blue Box Area

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of the DAX index. In which, the rally from 30 July 2020 low unfolded as an impulse 5 wave structure. Thus suggested that it’s a continuation pattern. And as per Elliott wave theory after a 3 waves pullback, it should do another extension higher in 5 waves impulse structure at least. Therefore, we advised members not to sell the instrument & trade the no enemy areas ( blue boxes) as per Elliott wave hedging remained the preferred path looking for 3 wave reaction higher at least. We will explain the structure & forecast below:

DAX 1 Hour Elliott Wave Chart
DAX Reacting Higher Once Again From Blue Box Area

DAX 1 Hour Elliott Wave Chart from 8/20/2020 NY Midday update. In which, the pullback in wave ((4)) completed at 12246.60 low. Up from there, the index rallied in 5 waves impulse structure where wave 1 ended at 12799.21 high. Wave 2 ended at 12517.44 low, wave 3 ended at 13046.13 high, wave 4 ended at 12965.40 low. While wave 5 ended at 13101.12 and thus completed wave (1) of ((5)).

Down from there, the index made a 3 wave pullback to correct the short term cycle from 7/30/2020 low (12246.60) within wave (2). The internals of that pullback unfolded as a zigzag structure where wave A ended at 12797.52 low. Wave B ended at 13052.84 high and wave C was expected to reach 12750.11- 12562.46 100%-161.8% Fibonacci extension area of A-B. Then from there, the index was expected to start the next leg higher or to do a 3 wave bounce at least.

DAX 1 Hour Elliott Wave Chart
DAX Reacting Higher Once Again From Blue Box Area

Here’s 1 Hour Elliott Wave Chart of DAX From 8/25/2020 Asia Update. In which, the index is showing reaction higher & breaking higher from the blue box area. Allowed members to create a risk-free position shortly after taking the longs at 12750.11- 12562.46 blue box area.
 

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$AR : Gas Producer Antero Resources May Accelerate


Antero Resources is an U.S. american corporation which has its headquarters in Denver, USA. Founded in 2008 and traded under tickers $AR at NYSE, it is a component of the Russel1000 index. Antero Resources is the 3rd largest U.S. producer of natural gas and possesses the reserves entirely within the Appalachian Basin. Using hydraulic fracturing, it extracts natural gas, ethane and natural gas liquids. Currently, we can see natural gas turning higher after the years of depressed prices. Therefore, Antero Resources being a pure player in that awakening commodity should become a good opportunity for investors to participate in the anticipated rally in gas prices.

Antero Resources Daily Elliott Wave Analysis 08.26.2020
The daily chart below shows the Antero Resources shares $AR traded at New York Stock Exchange. Before 2020, we saw an important price decline in $AR shares. Without any doubt, this development had its origin in the gas bear market. In March 2020, however, the stock price might have ended the grand super cycle correction in wave ((II)). From the March lows at 0.64, at first, $AR has developed a cycle higher in wave (1). It has printed a top in June at 4.15. Practically, that advance in only 3 months has provided a 6.5 multiplication to the share prices.

From the June highs, a correction lower in wave (2) has unfolded as a regular flat pattern being a 3-3-5 structure. The same month, it has found a bottom at 2.30. In the following, a new cycle higher has started. Hereby, the price has broken above the June highs at 4.15, confirming that the wave (3) is in progress.

Antero Elliott Wave Daily

Antero Resources 4H Elliott Wave Analysis 08.26.2020
The 4H chart below shows the $AR shares price action in more detail. From the June lows at 2.30, the stock price has advanced in waves ((i)) through ((iii)) of red wave 1. Consequently, after a pullback in wave ((iv)), an extension higher in wave ((v)) of 1 should take place. Later on, expect a pullback in wave 2 to find support in 3, 7 or 11 swings above 2.30 lows for a possible acceleration in wave 3 of (3).

As an outlook, wave (3) can bring the prices towards 5.82-8.00 area and beyond. At current price levels, investors in gas prices have a good opportunity to enter the market with a great potential to the upside.

Antero Elliott Wave 4H
 

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Elliott Wave View: Further Upside in Oil (CL)

Elliott Wave View of Oil (CL) suggests the correction against the cycle from July 30 low has ended as wave B. The dip unfolded as running flat Elliott Wave Structure. Down from August 5 high, wave ((a)) ended at 41.33 low. The bounce in wave ((b)) ended at 43.29 high. Afterwards, the commodity resumed lower and ended wave ((c)) at 41.45 low. This ended wave B pullback in the higher degree. Since then, the commodity has extended higher and broke above August 5 high, confirming that the next leg higher in wave C has already started.

Up from wave B low, wave (i) ended at 42.89 high and wave (ii) dip ended at 42.42 low. The commodity then extended higher in wave (iii) towards 43.57 high. Wave (iv) pullback then ended at 42.77 low. Currently, wave (v) is still in progress and could see another marginal high before ending 5 waves up from August 21 low as wave ((i)). Afterwards, 3 waves pullback should happen before upside resume again. As long as 41.45 low stays intact, expect the dips in 3,7 or 11 swings to find support. The structure from July 30 low is unfolding as zigzag Elliott Wave Structure. Therefore, the potential target to the upside for Oil in wave C would be 100-161.8% extension of A-B between 46-49 area.

Oil (CL) 1 Hour Elliott Wave Chart
Oil 8.27.2020 Asia
 

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DataDog Inc. ($DDOG) Looking For Higher Prices

The Corona Virus has provided some amazing opportunities for certain sectors. Cloud computing is one of those sectors that have vastly outperformed the marketplace since the March 2020 low. DataDog Inc is in the cloud computing business and has been on a tear since the all time lows that were printed in March 2020. Lets take a look at what the company does:

“Datadog helps developers and operations teams see their full infrastructure – cloud, servers, apps, services, metrics, and more – all in one place. This includes real-time interactive dashboards that can be customized to a team’s specific needs, full-text search capabilities for metrics and events, sharing and discussion tools so teams can collaborate using the insights they surface, targeted alerts for critical issues, and API access to accommodate unique infrastructures.

Datadog also integrates with various cloud, enterprise, and developer software tools out of the box, so established team workflows will be unchanged and uninterrupted when adopting Datadog’s service.”


Cloud computing is one of the sectors that the marketplace has made clear will benefit in the future. DDOG is counting clean off the October 2019 all time low low, lets take a look at the Daily chart below.

DataDog Elliottwave Daily View:
DataDog

DataDog has not been public that long, and doesn’t have much historical data. It set an all time low in October 2019, and has rallied impulsively off that low. It set a wave ((2)) low in March 2020 and has been acting impulsively from there. Lets take a look at some levels.

Medium term term view from 10/23/2019 lows of 27.55. Wave ((1)) is set at 50.12 on 2/12/2020 and wave ((2)) at 28.88 on 3/216/2020. After that, an extended Black ((3)) took place, which topped on 7/09/2020 at 98.99. After that, Black ((4)) is favoured to be set at 72.60 on 8/10/2020. Currently, the is an incomplete bullish sequence off the October low. This means that one more high is needed to meet the minimum number of swings to complete an impulse from the Oct 2019 lows. The area that Black ((5)) can target is from 105.40 to 115.56 before setting a larger degree Red I peak.

In conclusion, Black ((4)) is favoured to be set as long as that 72.60 low remains intact. Blue (1) of Black ((5)) is also favoured to be set. But prices can correct a bit deeper for blue (2). As long as ((4)) low remains intact, I do favour one more high to take place to complete the bullish sequence. After that, a deeper pullback in Red II can be realized.
 

Elliottwave-Forecast

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Elliott Wave View: Amazon (AMZN) Continues to Benefit from the Pandemic

Amazon (AMZN) 45 minutes chart below shows that the stock has continued to extend higher from August 12 low. From that low, the stock rallied higher in wave ((iii)), which ended at 3457.80 high. The rally unfolded as a 5 waves impulsive Elliott Wave Structure. Up from wave ((ii)) low, wave (i) ended at 3217.52 high. The dip in wave (ii) ended at 3120 low. The stock then extended higher in wave (iii), which ended at 3326.99 high. Wave (iv) pullback then ended at 3257.56 low and unfolded as a flat correction. The push higher in wave (v) ended at 3457.80 high. This completed wave ((iii)) in larger degree.

Currently, the stock is doing a pullback in wave ((iv)) to correct the cycle from August 12 low. The structure could be unfolding as a double correction. Wave (w) has ended at 3378 low. The bounce in wave (x) is currently is progress. Afterwards, the stock could do another leg lower in wave (y) and end wave ((iv)) in the higher degree. As long as 3072.72 low stays intact, the dips in 3,7 or 11 swings is expected to find support for more upside. The stock then can resume higher in wave ((v)) afterwards.

Amazon (AMZN) 45 Minutes Elliott Wave Chart
AMZN 8.28.2020 Post Market
 

Elliottwave-Forecast

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Hello fellow traders. Another instrument that we have been trading lately is INDU. In this technical blog we’re going to take a quick look at the Elliott Wave charts of $INDU , published in members area of the website. As our members know, INDU is showing higher high sequences in the cycle from the March low which makes it bullish against the 24418 low. Short term cycle from the 24418 low also shows higher high sequences, calling for further rally. Consequently, we advised members to avoid selling $INDU and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and Trading strategy.

INDU 1 Hour Elliott Wave Analysis 8.19.2020
INDU is giving us pull back wave 4 red that is correcting cycle from the 25887 low. Pull back looks incomplete at this stage. We expect to see another leg down toward 27425-27094 ( buyers zone) . From marked Blue Box area area we expect rally to take us toward new highs ideally. As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We don’t recommend selling it against the main trend. Strategy is buying the dips at the marked blue box area. As the main trend is bullish, we expect to see 3 waves bounce at least from the mentioned zone. As soon as the price reach 50 Fibonacci Retracement against the (x) blue peak, we should make long positions Risk Free ( put SL at BE).

INDU

INDU 1 Hour Elliott Wave Analysis 8.21.2020
Eventually we got another leg down toward blue box area. INDU found buyers and giving us nice reaction when wave 4 red pull back ended at the 27395 low. Current bounce has already reached 50 fibs against the middle pivot, so all longs should be risk free at this stage. We don’t recommend selling INDU in any proposed pull back and favor the long side from the blue box.

INDU

INDU 1 Hour Elliott Wave Analysis 8.25.2020
27394 low held nicely during the short term pull back and we got further rally. INDU broke 08/11 peak confirming next leg up is in progress. Cycle from the 27394 is about to complete as 5 waves structure. We expect to get pull back that should find buyers again for further rally.

Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room

INDU

Elliott Wave Forecast
 

Elliottwave-Forecast

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Cloud computing is one of the sectors that has really taken the spot light since COVID-19 hit the world by storm. This sector has vastly outperformed the marketplace since the March 2020 low. Twilio is in the cloud communications business and has had an extremely impressive rally since March 2020 low. It is a a cloud communications platform as a service company based in San Francisco, California. Twilio allows software developers to programmatically make and receive phone calls, send and receive text messages, and perform other communication functions using its web service APIs.

Cloud computing is one of the sectors that the marketplace has made clear will benefit in the future Corona Virus world we now live in. TWLO is counting clean off the 2017 all time low low, lets take a look at the Daily chart below and then we'll get into the shorter term 4H chart.

Twilio Daily Elliott Wave View:
Twilio

On a Daily Time Frame. From the 2017 lows, Twilio has a great looking structure that favours further extension higher in the future. Off the 2017 low of 22.80, I am favouring a nesting setup for the time being. From May 2017 to June 2019 Twilio has a technically clean 5 waves up for Red I. After that, Twilio corrected that cycle in Red II, for around 9 months into the March 2020 low. From that March 2020 low of 68.06, that market has clearly rallied impulsively into the recent peak posted on August 4, 2020.

It is currently in progress of correcting the cycle from March 2020 low. This correction can unfold in 3, 7 or 11 swings before moving higher. Presently, it appears to be correcting in 3 waves down, but this can evolve over time if the market wants to correct this name deeper in time and price, in 7 or 11 swings. Lets take a look at the 4H more detailed view from the March 2020 low.

Twilio 4H Elliott Wave View:
Twilio

Medium term term view from 3/16/2020 lows of 68.06. Blue (1) is set at 102.69 on 3/26/2020 and blue (2) at 79.25 on 4/03/2020. After that, an extended blue (3) took place, which topped on 5/26/2020 at 216.00. After that, blue (5) rallied to a black ((1)) high at 293.00 on 8/04/2020 Currently, the wave down from that peak has the characteristics of 5 swings down, including an RSI divergence at blue (A) low. The instrument is now bouncing in 3 waves and is favoured to be peaked for (B) recently on 8/28/2020.

There is a blue box extreme area where buyers may show up for a bounce in 3 waves at least. This runs from 219.11 to 184.96. As mentioned above, if the market wants to do 7 swings down instead of 3, this blue box may only bounce in 3 waves. This would be followed by another leg down to lower lows to complete the correction.

In conclusion, Black ((1)) is favoured to be set. The blue box price area may change if (B) manages to post more highs. But regardless, it is still favoured to have another leg down in (C) before heading higher.
 

Elliottwave-Forecast

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SPY: The Decision Time is Coming Soon

The Index is within the Grand Super Cycle and is showing a clear five waves structure. The Elliott wave Theory states that after five waves a three waves pullback will happen to correct the entire cycle. The following chart is a representation of the idea, which is the basic wave structure within the theory.



The above graphic shows a five waves cycle in which each smaller cycle subdivides in five waves.This is three cycles higher with the trend and then two cycles against the trend to complete the five waves. Then a big correction of the five wave cycle in a form of an ABC or 5-3-5.

SPY is showing a visible Five waves since the all-time lows and soon needs to decide if the Index will crash into the 185-87 area, or the Index will continue higher into the 600-700 area. At this stage, it is hard to define only looking at the Index which path will be taking place.

Let’s take a look and explain the possible two paths and what supports each one of the paths.

Path 1: The Five waves advance from all-time lows. The Index can be labelled, as five waves and it is clear the Index is showing three channels since the lows. The First channel runs from the all-time lows until the (I) peak in 2000, then the second channel runs from the lows at (II) in 2009 until (III) which happens in 2020.

The Idea of three channels higher and then two channels lower in wave (II) and (IV), makes a classic five waves advance which will be calling for the biggest sell-off we have ever seen. The advance provides extension because when we look at the extension between wave (I) and (II) clearly pass the 1.618 extension, which is one requirement in our rules. One negative aspect is the idea of wave (II) took nine years and wave (IV) only took two months, which something which is not ideal within the Elliott wave Theory.

SPY Monthly Chart - Elliott Wave Path 1:


Path 2: The Nest: The Elliott wave Theory provides a concept that is called a Nest. A Nest is a series of five waves advance before acceleration takes place within the powerful wave ((3)) of III of (III). The following chart represents the Nest within the Elliott Wave Theory.



The above graphic shows an extension in either wave one, three & five. The Idea of the nest happens when the trend is powerful, and one side of the Market keeps extending leaving the other side without a chance.

The Index ETF (SPY) can be label as a nest, as we are showing in the following chart:

SPY Quarterly Chart - Elliott Wave Path 2:


The Nest will have the Index trading within wave ((1)) of III of (III). This will take the Index into the 362-414 area first. Then the 490-550 later before the Index can trade close to the 700 levels.

As we mentioned above, the decline this year is too shallow and lacking time which supports the nest. Most of the time wave II of (III) is shallow and fast, which fits the decline this year. Wave (II) in the Index took nine years. In the first path 1 non nest scenario, wave (IV) only took two months, something which is not normal.

As mentioned above it is hard to determine which path the Index will be taking. However looking at the Multi-Market correlation, the nest is very well supported. Many companies will go out of the Market if path 1 will be taking place. All the Airlines will go out of business. This is because there isn't enough space to support a decline like path 1 is calling.

As we always say, The Elliott Wave Theory is great but was developed in the 1930's. We now are trading in 2020. Consequently, we have more tools and opportunities to see a Global Market. We can compare them and look for the edge to create a better forecast. We believe path 2 makes more sense while we need to understand path 1 and trade smart.
 

Elliottwave-Forecast

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In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of Coffee ticker symbol $KC_F. In which, the rally from 15 June 2020 low unfolded as impulse structure favored more strength to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in Coffee in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

Coffee 1 Hour Elliott Wave Chart
Coffee Elliott Wave View: Buying From Blue Box Area

Above is the 1 Hour Elliott Wave Chart from 8/09/2020 Weekend update. In which, the pullback to $96.17 low ended wave 2. Up from there, the rally higher took place as impulse structure where wave ((i)) ended at $102.95 high. Wave ((ii)) ended at $99.05 low, wave ((iii)) ended at $119.70 high, wave ((iv)) at $116.50 low. While wave ((v)) ended at $127.25 high, which also completed wave 3. Down from there, Coffee made a 3 wave pullback in wave 4 to correct the cycle from 7/15/2020 low ( $96.17). The internals of that pullback unfolded as Elliott wave Zigzag structure where wave ((a)) ended at $116.45 low. Wave ((b)) ended at $123.50 high and wave ((c)) was expected to reach $112.48- $105.73 100%- 161.8% Fibonacci extension area of ((a))-((b)). From there, buyers were expected to appear for more upside or for 3 wave reaction higher at least.

Coffee 1 Hour Elliott Wave Chart
Coffee Elliott Wave View: Buying From Blue Box Area

Here's the Latest 1 Hour Elliott Wave Chart From 9/01/2020 Asia update. Showing Coffee reaching the blue box area & reaction higher from the blue box area. Allowed members to create a risk-free position shortly after taking the longs at $112.48- $105.73 blue box area.